N.J. DCA Landlord/Tenant Information Series — Security Deposit Law

46:8-21.2. Limitation on amount of deposit
An owner or lessee may not require more than a sum equal to 1 1/2 times 1 month's rental
according to the terms of contract, lease, or agreement as a security for the use or rental of real
property used for dwelling purposes. Whenever an owner or lessee collects from a tenant an
additional amount of security deposit, the amount collected annually as additional security shall
not be greater than 10 percent of the current security deposit.
HISTORY: L. 1971, c. 223, § 4; amended 2003, c. 188, § 5, eff. Jan. 1, 2004.

46:8-21.3. Security deposits prior to effective date of act; date of compliance
Security deposits made prior to the effective date of this act shall comply with the provisions of
this act within 90 days of the effective date thereof.
HISTORY: L. 1971, c. 223, 6, eff. June 21, 1971.

46:8-21.4. Small claims jurisdiction of actions on security deposits less than $5,000
Notwithstanding any law or rule to the contrary, the Division of Small Claims of the Superior
Court, Law Division, Special Civil Part shall have jurisdiction of actions between an owner or
lessee and tenant for the return of all or a part of a security deposit in which the amount in
dispute, including any applicable penalties, does not exceed the sum of $ 5,000, exclusive of
costs.

HISTORY: L. 2003, c. 188, § 6, eff. Jan. 1, 2004.